Whether the United States federal minimum wage should be increased, is often debated. The federal minimum wage has been changed twenty-two times since its inception. In 1938, the minimum wage was set at 25 cents per hour. Our economy has drastically changed since the early 1900s, the 25 cents per hour minimum wage has been changed to $7.25 an hour. Even with this change, due to the current inflationary situation, living standards are nearly impossible. I agree that the United States federal minimum wage should be increased to reduce labor turnover, increase consumer activity, and decrease poverty and crime rates. Increasing the federal minimum wage would increase consumer goods activities due to increased pay. According to the U.S. Bank, at …show more content…
This is true, however, with pay being raised, one can afford more products than before. Business owners would benefit from the increase in consumer goods activity. Due to consumer activities uprising, the need for worker compensation will decrease. With the federal minimum wage increasing, worker compensation would decrease due to an upcharge in payroll. The Worker’s Compensation Board states that “workers’ compensation is insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job,” (WCB). Ideally, the government would decrease worker compensation because of higher pay. Due to this, it would increase the reduction of labor turnover. However, with the reduction in labor turnover, employees would most likely stay at their jobs for longer periods. Our economy currently struggles with poverty rates, which rapidly increase as the years go by. Times Magazine stated, “12.4% of Americans now live in poverty according to new 2022 data from the U.S. census, an increase from 7.4% in 2021.” Poverty rates would decrease because the minimum wage would be higher, which would allow consumers to afford more. With better opportunities, there would be fewer crime